Paying executives during a bailout
12/23/2008
Nick Binkley and Peter Gourevitch ,
San Diego - Should the folks who made all that money during the go-go Wall Street days get to keep it, or should they have to pay back their big gains as a condition for the bailout? Taxpayers resent the idea they are subsidizing the perpetrators of the mess. So, why not demand a “clawback” – getting back gains that were based on shady numbers or sloppy business practices.
The idea may shock people who see contracts as sacred: once the executive got paid, it is too late to ask that the funds be returned. But “clawbacks” are a staple provision governing the operating agreements of the vast majority of venture capital and private equity funds.
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